TLDR
- Deckers delivered record fourth-quarter fiscal sales totaling $1.12 billion, representing 10% growth and surpassing the consensus forecast of $1.09 billion.
- Fiscal 2026 annual revenue reached $5.47 billion with 10% growth, while adjusted earnings per share of $7.02 climbed 11% — both exceeding analyst projections.
- Hoka achieved its largest quarterly performance in history with $671 million in sales, marking 15% year-over-year expansion.
- UGG sales increased 9% during the fourth quarter to $409 million, fueled by expanded offerings across sneakers, sandals, and men’s categories.
- Management projects fiscal 2027 revenue between $5.86–$5.91 billion with EPS ranging from $7.30–$7.45, targeting high single-digit annual expansion through 2030.
Deckers Outdoor unveiled record-setting revenue and profit figures for both its fourth quarter and complete fiscal year, with the Hoka and UGG brands generating robust expansion that exceeded analyst predictions.
Shares initially climbed 4.3% during Wednesday’s extended trading session before retracing gains. The stock traded approximately 1% lower in Friday’s premarket action near $101, following a 4.5% advance during Thursday’s regular session. Year-to-date, shares have declined roughly 1% and are down 18.6% over the trailing twelve months.
Deckers Outdoor Corporation, DECK
During the fiscal fourth quarter concluded March 31, Deckers generated revenue totaling $1.12 billion with 10% growth, alongside adjusted earnings per share of $0.96. The Street had anticipated $1.09 billion in sales and $0.83 per share.
For the complete fiscal 2026 period, revenue totaled $5.47 billion with 10% growth, while diluted earnings per share reached $7.02, climbing 11% from the previous year’s $6.33. Consensus estimates had called for $5.44 billion in revenue and $6.89 per share.
Hoka Achieves Record-Breaking Quarterly Performance
Hoka delivered exceptional results during the period. Revenue totaled $671 million, representing 15% year-over-year growth and marking the brand’s largest quarterly performance on record. For the complete year, Hoka revenue expanded 16% to approximately $2.6 billion.
Direct-to-consumer Hoka sales climbed 18% in the fourth quarter, while wholesale channels grew 13%. CEO Stefano Caroti noted that six Hoka franchise families currently generate over $100 million in annual sales, with three additional franchises nearing that milestone. Domestic brand recognition reached approximately 60%, advancing from 50% in the prior year.
Caroti highlighted franchises such as Bondi, Clifton, and Mach as significant drivers. He indicated plans to launch 20 to 25 Hoka retail locations annually, concentrating on metropolitan areas and global markets.
UGG revenue expanded 9% during the fourth quarter to $409 million, exceeding the $376 million Wall Street projection. For the full year, UGG revenue increased 8% to $2.7 billion.
The brand’s expansion stemmed from diversified product offerings. Caroti explained that sneakers and sandals — including the Lowmel franchise and Golden Collection — contributed over half of UGG’s annual growth. Men’s product lines represented more than 20% of UGG’s worldwide expansion throughout the year.
Profitability Metrics and Capital Allocation
Full-year operating margin stood at 23.1%. Gross margin registered 57.7%, declining 20 basis points, with tariff pressures contributing roughly 80 basis points of headwind, partially counterbalanced by reduced freight expenses.
Deckers produced over $1 billion in free cash flow and executed $1.075 billion in share repurchases throughout fiscal 2026 at an average cost of $102.43 per share. The company concluded the year holding $1.9 billion in cash with zero outstanding debt obligations.
For fiscal 2027, Deckers anticipates revenue spanning $5.86–$5.91 billion with earnings per share between $7.30–$7.45. Gross margin is projected at approximately 56.5%, with elevated freight and material costs pressuring the metric.
Management’s first-quarter outlook calls for revenue growth near 5%, which CFO Steve Fasching described as the company’s inaugural billion-dollar June quarter. First-quarter EPS is projected within a range of $0.82 to $0.87.
Deckers has surpassed revenue and earnings projections in 19 of the previous 20 quarterly reports.
